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Elevated National Debt Cap

8/10/2009 10:40:27 AM

Congress may be forced to increase the legal limit on the nation's credit card later this year,Treasury officials reported Wednesday. When focusing more attention on the increasing national debt just as lawmakers are putting the finishing touches on President Obama's trillion-dollar surpass of the nation's health care system.

The figures of funds to be borrowed from the public and foreign creditors, is limited by law to $12.1 trillion, a cap that has been raised several times since the nation declined into recession in December 2007. The Treasury officials predicted this week that they expect to borrow an additional $892 billion through the end of the year, driving the overall debt past the cap sometime in the fourth quarter.

" Given the uncertainty surrounding potential borrowing needs, Treasury will continue to keep Congress and financial market participants enlightened of developments as the debt outstanding approaches the statutory limit," Treasury officials said in a written statement.

The debt is the accumulation of borrowing necessary to finance years of annual budget deficits. Currently, the deficit is on track to encroach $1.8 trillion, a postwar record in comparison with the size of the overall economy. Polls have shown a concern with the over growing of the nation's spending habits, and the concern has affected the health care debate on Capitol Hill, where some Democrats--and a majority of Republicans are questioning a new expensive program with the nation so deeply in debt in order to expand health care to the uninsured.

Raising the debt limit could cause additional pressure on Obama's other projected programs in his agenda. If that is true, then that will lead to additional $9 trillion in borrowing over the next decade.


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